Corning Case Study Solution - "Analyzing the Convertible Bond Offering"
The solution, using the financial analysis from the spreadsheets,
answers the following questions:

1.        Why do you suppose Corning is issuing convertible bonds and
concurrently offering common stock?  Prepare to control the
advantages of convertible bonds versus straight debt and common

2.        What kinds of insights do the descriptive rations in case Exhibit
5 give you?

3.        Please value the convertible bond

4.        In valuing the call option, does Coopers need to adjust the
stock price for dividends?

5.        What should Coopers use as her assumption for volatility?  
Check the sensitivity of your call-option value to variations in
the assumption.  In the call-option value highly sensitive to volatility?  
Why is volatility so important?

6.        What does it mean to force conversion?  Under what
circumstances would Corning attempt to force conversion?

7.        Should Julianna Coopers invest in this bond offering?

The cost for this case study solution is $29.95.  It contains a 22 slide PowerPoint presentation that presents the solution and
financial analysis.  Also included are 3 excel files; 1-Implied Value, 2-Normal Distribution and 3-Black Scholes and the Sensitivity
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